DENVER, March 14 /PRNewswire/ -- TeleTech Holdings, Inc. (Nasdaq: TTEC), a
leading global provider of customer relationship management (CRM) services and
solutions, announced today its Board of Directors has named Kenneth D. Tuchman
as interim chief executive officer. Tuchman replaces former CEO Scott
Thompson who resigned from the position as well as from the Board. Larry
Kessler has also resigned from the recently appointed position of chief
operating officer.
Tuchman returns to the CEO role he held since founding the company in 1982
until late 1999, and will remain Chairman of the Board of Directors. The
Board has initiated an executive search for a new chief executive officer.
"We have a strong executive team at TeleTech that is committed to making
this change in leadership a seamless transition for our employees, customers
and shareholders," commented Tuchman. "For 19 years, our company has adapted
to the challenges in the marketplace and has set the standards in our
industry. In the months ahead, we will demonstrate our unwavering commitment
to providing the highest quality service on a global basis."
BUSINESS OUTLOOK
The following statements are based on current expectations. These
statements are forward-looking, and actual results may differ materially.
TeleTech expects first quarter 2001 revenues to be within the range of
$230 to $235 million, lower than previously anticipated. The company's
revised guidance is primarily due to delays in new and existing client
programs as a result of an accelerated downturn in the economy, and lower than
anticipated revenues from Verizon. The company's previous guidance assumed
approximately $10 million in additional revenues from new and existing
contracts and $5 million in additional revenues from Verizon.
TeleTech expects first quarter 2001 earnings per share to be within the
range of $0.11 to $0.12, excluding non-recurring items. The decrease is
primarily due to the margin impact of a lower revenue base, which has resulted
in under-utilization of certain customer interaction centers.
"TeleTech has historically been focused on high-end, multi-year CRM
outsourcing opportunities for the Global 1000. As companies are facing
challenges because of the uncertainty in the economy, we are seeing delays in
decisions on these types of long-term commitments," commented Tuchman. "While
we are experiencing the effects of this uncertainty, we remain confident in
our business model and opportunities to grow the business."
TeleTech senior management will host a conference call to discuss today's
announcement at 5:00 p.m. ET. To participate, please dial 719-457-2645
(code: 571888). Replay of the conference call will be available by dialing
719-457-0820 (code: 571888), starting at approximately 8:00 p.m. ET and will
play for seven days. The conference call will also be simulcast live on the
Internet via TeleTech's web site at http://www.teletech.com. A replay will be
available at this location for 30 days.
TELETECH PROFILE
Founded in 1982, TeleTech is the leading provider of integrated customer
relationship management (CRM) services and solutions for global organizations
predominantly in the communications, financial services, government and
transportation industries. TeleTech has operations in 11 countries which
include Argentina, Australia, Brazil, Canada, China, Mexico, New Zealand,
Singapore, Spain, the United Kingdom and the United States. TeleTech's CRM
capabilities, including B2B electronic channel management and database
management, help companies inform, acquire, service, grow and retain their
customers throughout the entire relationship lifecycle. TeleTech integrates a
full spectrum of voice and Internet communications, including custom e-mail
response, "chat" and extensive Web co-browsing capabilities. Information
regarding TeleTech Holdings can be found on the Worldwide Web at
http://www.teletech.com.
FORWARD LOOKING STATEMENTS
All statements not based on historical fact are forward-looking statements
that involve substantial risks and uncertainties. In accordance with the
Private Securities Litigation Reform Act of 1995, following are important
factors that could cause TeleTech's actual results to differ materially from
those expressed or implied by such forward-looking statements: lower than
anticipated customer interaction center capacity utilization; the loss or
delay in implementation of a customer management program; TeleTech's ability
to build-out facilities in a timely and economic manner; greater than
anticipated competition from new entrants into the customer care market,
causing increased price competition or loss of clients; the loss of one or
more significant clients; higher than anticipated start-up costs associated
with new business opportunities and ventures; general economic conditions;
economic conditions which may disproportionately affect TeleTech's larger
clients; TeleTech's ability to predict future revenues and associated costs,
as well as the potential volume or profitability of any future technology or
consulting sales; TeleTech's agreements with clients may be canceled on
relatively short notice; and TeleTech's ability to generate a specific level
of revenue is dependent upon customer interest in and use of the Company's
clients' products and services. Readers are encouraged to review TeleTech's
1999 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, for first,
second and third quarters 2000, and other publicly filed documents which
describe other important factors that may impact TeleTech's business, results
of operations and financial condition. TeleTech undertakes no obligation to
update its forward looking statements after the date of this release.
SOURCE TeleTech Holdings, Inc.
CONTACT: Emily Eikelberner, Investor Relations of TeleTech Holdings,
Inc., 303-894-7360, emilyeikelberner@teletech.com/
